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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Boeing Company

Contract Pricing Problems at Corpus Christi Army Depot

Date: 05/03/2011 (Date of Report)

Misconduct Type: Defective Pricing

Enforcement Agency: Defense – General

Contracting Party: Defense - Army

Court Type: N/A

Amount: $1,600,000

Disposition: Investigative Finding

Synopsis: A May 2011 Department of Defense Inspector General audit of the Army Aviation and Missile Life Cycle Management Command’s (AMCOM) contract with Boeing to support the Corpus Christi Army Depot (CCAD) found that Boeing submitted cost and pricing data that was not current, complete, and accurate. The report calculated that Boeing charged the Army about $13 million (131.5 percent) more than fair and reasonable prices for 18 spare helicopter parts. The audit also found that Boeing owed the Army an additional refund of $538,688 because it did not meet requirements in a subsequent contract phase. Boeing issued the Army a credit for $324,616 for one of the defectively priced parts and provided additional refunds of about $1.3 million.